Cryptocurrencies will be included in the measure to regulate the fintech sector in Mexico.
This was confirmed by the Secretariat of Finance and Public Credit (SHCP), which will present a plan in September to regulate financial technology companies.
The upcoming regulation known as Fintech Law will include cryptocurrencies like Bitcoin, Forbes reported. Some small businesses are concerned about the possible consequences of the new regulation. For example, they will be expected to have between 300,000 and 400,000 dollars in order to fulfill the compliance portion, as was expressed to El Economista by companies in this category.
Cryptocurrency: balancing legislation with innovation
One of the major concerns about this type of currency is its anonymity. Cryptocurrency holders are not identifiable, so the incoming regulation intends for cryptocurrencies to identify themselves in order to gain access to the system.
To strike a balance, it will require regulatory fraud prevention and protection for customers, but not so far as to restrict the most innovative ideas.
At the beginning of May, the price of Bitcoin rose to more than $2,000 per unit. At the same time, Bank of Mexico (Banxico) officials performed transactions with the virtual currency in an effort to become more acquainted with the technology.
As reported by El Universal, the transactions were “experimental” in nature. Despite its increasing economic value, the flip side of the coin is the fraud that can go along with it.
Bitcoin didn’t fare well under Wannacry
The Wannacry cyberattack that occurred last week has raised the fears of regulators. The malware affected more than 100 countries worldwide. To learn more about this powerful virus, you can read this notice. The perpetrators of the attack demanded compensation in Bitcoins from the people and companies impacted. In exchange, the infected computers would be released.
The perpetrators of the attack demanded compensation in Bitcoins from the people and companies impacted. In exchange, the infected computers would be released.
On the one hand, cryptocurrencies reveal their less than transparent side, and a number of studies do point to the possible links with illegal activities. Nevertheless, they were chosen because the transactions needed to be under the radar and difficult to intercept.
Understanding, not fear
In an interview by Coindesk with Yaya J. Fanusie, Consultant to the National Security Agency of the United States (NSA), the specialist warned about the need to understand how these currencies work. A group of leading experts that advises various government agencies in the U.S. is analyzing potential threats to national security. The research aims to explore blockchain technology as a means for preventing illicit activity.
While cryptocurrencies are not considered a threat per se, the specialist suggests the need for a serious investigation. Yaya Fanusie recommends viewing Bitcoin as an alternative method of payment.